Selected Acquisition Report (SAR)

Transcription

1 Selected Acquisition Report (SAR) RCS: DD-A&T(Q&A) Space Based Infrared System High (SBIRS High) As of FY 2016 President's Budget Defense Acquisition Management Information Retrieval (DAMIR) UNCLASSIFIED

2 Table of Contents Common Acronyms and Abbreviations for MDAP Programs 3 Program Information 5 Responsible Office 5 References 6 Mission and Description 7 Executive Summary 8 Threshold Breaches 10 Schedule 11 Performance 15 Track to Budget 17 Cost and Funding 19 Low Rate Initial Production 47 Foreign Military Sales 48 Nuclear Costs 48 Unit Cost 49 Cost Variance 55 Contracts 61 Deliveries and Expenditures 66 Operating and Support Cost 67 UNCLASSIFIED 2

3 Common Acronyms and Abbreviations for MDAP Programs Acq O&M - Acquisition-Related Operations and Maintenance ACAT - Acquisition Category ADM - Acquisition Decision Memorandum APB - Acquisition Program Baseline APPN - Appropriation APUC - Average Procurement Unit Cost $B - Billions of Dollars BA - Budget Authority/Budget Activity Blk - Block BY - Base Year CAPE - Cost Assessment and Program Evaluation CARD - Cost Analysis Requirements Description CDD - Capability Development Document CLIN - Contract Line Item Number CPD - Capability Production Document CY - Calendar Year DAB - Defense Acquisition Board DAE - Defense Acquisition Executive DAMIR - Defense Acquisition Management Information Retrieval DoD - Department of Defense DSN - Defense Switched Network EMD - Engineering and Manufacturing Development EVM - Earned Value Management FOC - Full Operational Capability FMS - Foreign Military Sales FRP - Full Rate Production FY - Fiscal Year FYDP - Future Years Defense Program ICE - Independent Cost Estimate IOC - Initial Operational Capability Inc - Increment JROC - Joint Requirements Oversight Council $K - Thousands of Dollars KPP - Key Performance Parameter LRIP - Low Rate Initial Production $M - Millions of Dollars MDA - Milestone Decision Authority MDAP - Major Defense Acquisition Program MILCON - Military Construction N/A - Not Applicable O&M - Operations and Maintenance ORD - Operational Requirements Document OSD - Office of the Secretary of Defense O&S - Operating and Support PAUC - Program Acquisition Unit Cost UNCLASSIFIED 3

4 PB - President s Budget PE - Program Element PEO - Program Executive Officer PM - Program Manager POE - Program Office Estimate RDT&E - Research, Development, Test, and Evaluation SAR - Selected Acquisition Report SCP - Service Cost Position TBD - To Be Determined TY - Then Year UCR - Unit Cost Reporting U.S. - United States USD(AT&L) - Under Secretary of Defense (Acquisition, Technology and Logistics) UNCLASSIFIED 4

5 Program Information Program Name Space Based Infrared System High (SBIRS High) DoD Component Air Force Responsible Office Col Michael A Guetlein Remote Sensing Systems Directorate (SMC/RS) 483 N Aviation Blvd Bldg 271 Los Angeles Air Force Base (LAAFB) El Segundo, CA michael.guetlein@us.af.mil Phone: Fax: DSN Phone: DSN Fax: Date Assigned: September 8, 2014 UNCLASSIFIED 5

6 References Baseline (GEO 1-4, HEO 1-2, and Ground) SAR Baseline (Development Estimate) Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated March 19, 1998 Approved APB Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated February 27, 2013 Block Buy (GEO 5-6) SAR Baseline (Production Estimate) Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated September 4, 2012 Approved APB Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated February 27, 2013 UNCLASSIFIED 6

7 Mission and Description The Space Based Infrared System High (SBIRS High) program is intended to satisfy key requirements delineated in the SBIRS ORD dated August 15, 1996, with Annex 1 dated July 17, 1998, within the available budget and schedule. SBIRS High is an integrated system consisting of multiple space and ground elements, with incremental deployment phasing, simultaneously satisfying requirements in the following mission areas: Missile Warning, Missile Defense, Technical Intelligence and Battlespace Awareness. The constellation architecture for SBIRS High includes Highly Elliptical Orbit (HEO) sensors and Geosynchronous Earth Orbit (GEO) satellites, in addition to the following ground elements: a Continental United States-based Mission Control Station and Mission Control Station Backup, overseas Relay Ground Stations, Mobile Ground Stations, and associated communication links. The first increment of the SBIRS ground system was certified for operations in December 2001 and supports mission processing of the legacy Defense Support Program system satellites and fusion of HEO monotracks and other data. The SBIRS HEO system was certified for the Integrated Tactical Warning/Attack Assessment (ITW/AA) mission in November 2008 and technical intelligence mission in August The SBIRS GEO 1 and 2 systems were ITW/AA mission certified in August 2013 and December 2013, respectively. The SBIRS High MDAP includes two subprograms: the Baseline subprogram, comprised of GEO satellites 1-4, HEO payloads 1-2 and associated ground elements; and the GEO 5-6 Satellites Replenishment Production "Block Buy" subprogram. HEO payloads 3 and 4 are not part of this MDAP, but are closely related, so programmatic information is included in the Executive Summary of this SAR. UNCLASSIFIED 7

8 Executive Summary SBIRS Baseline (Geosynchronous Earth Orbit (GEO) 1-4, Highly Elliptical Orbit (HEO) 1-2, and Ground) On August, 4, 2014, National Geospatial-Intelligence Agency (NGA) declared the start of Technical Intelligence (TI) Initial Data for Evaluation (IDE) phase for GEO 1-2 starer sensors. TI operational acceptance for the starer sensors is projected for the third quarter FY The Ground Block 10.3 baseline consolidates all SBIRS/Defense Support Program (DSP) operations into the Mission Control Station (MCS) at Buckley AFB under a single software and hardware baseline, and the Ground Block 10.3 baseline is planned to support the next GEO launch in May The contractor did not complete Capability Integration (CI) at MCS on December 15, 2014 as planned but is expected to complete CI by March The Air Force convened a General Officer (GO) Summit in November 2014 and notified stakeholders (Headquarters Air Force, Air Force Space Command, Air Force Operational Test and Evaluation Center, 14th Air Force, Remote Sensing Systems Program Office, Missile Defense Agency, and the Integrated System Program Office) of the schedule challenges going forward. The GO summit provided the program office direction to hold the contractor to the current baseline schedule and convene a second General Officer summit in the March 2015 timeframe to evaluate progress and engage additional corrective actions, if necessary. The program office has updated the Initial Increment 2 Ground Architecture delivery estimate from March 2016 to June The second Block 10 Ground system mission processing class completed on November 5, A total of nine of 11 classes are now complete. Working with updated 460 Space Wing (SW) training requirements, the program office reduced the number of training classes to 11. The Initial Qualification Trainer (IQT) was delivered to 460 SW on October 29, 2014, three months ahead of the original scheduled delivery date. On November 7, 2014, the program office awarded the SBIRS Survivable Endurable Evolution (S2E2) Increment 2 contract. This adds GEO processing capability to the two Mobile Ground Terminals (MGT) procured under the Inc 1 S2E2 contract and adds a third GEO/Defense Support Program (DSP) capable MGT. With a contract award for SMGT 4 and 5 planned in early FY 2016 we will have completed our procurement of the main elements (five SBIRS MGTs) for the S2E2 Mobile ground system. SBIRS GEO 3-4 Production The SBIRS GEO-3 satellite completed post-acoustic deployments on August 31, 2014 and entered Thermal Vacuum (TVAC) testing in January Due to launch vehicle availability, the satellite is slated to enter storage after TVAC in GEO-3 will be launched in 2017 as the 4th GEO flight. SBIRS GEO-4 satellite integration is proceeding as planned. The Contamination Door Assembly (CDA) and Signal Processing Assembly (SPA) installation were completed on November 5, Payload integration completed in January 2015, and additional mechanical and electrical component integration continues in preparation for satellite Baseline Testing in March GEO-4 is ahead of schedule and is planned to launch in May 2016 as the 3rd GEO flight. The HEO-4 production effort continues to make strong progress. The SBIRS HEO-4 payload successfully completed Pre- TVAC Ambient Functional Testing on November 21, HEO-4 Payload TVAC testing successfully completed on December 29, 2014, obtained all necessary data, and comparable with HEO-3 test results. The payload remains on track to meet the Host need date of May 1, HEO 3-4 are part of the same contract as GEO 3-4, but are not baselined as part of this MDAP. SBIRS Block Buy (GEO 5-6) UNCLASSIFIED 8

9 After a June 24, 2014 contract award, the Integrated Baseline Review (IBR) was successfully completed on December 16, The baseline was determined realistic and executable after three months of assessment effort and refinement of the Integrated Master Schedule (IMS), earned value technique and backup data, scope allocation, budget distribution, and management approach. SBIRS GEO 5-6 initial Non- Engineering (NRE) continues to progress well. To date, the NRE contract is 85% complete. The November 2014 Integrated Program Management Report (IPMR) continues to reflect positive cost and schedule indices. Designs and hardware from the NRE effort remain on time to support production. On September 17, 2014, the program awarded the Dual Band space segment effort on the production CLIN. Dual Band adds a Unified S-Band (USB) command uplink capability to the GEO 5 and 6 satellite in case of future potential sell-off of the current Space Ground Link System (SGLS) S-Band uplink frequency band. There are no significant software-related issues with this program at this time. UNCLASSIFIED 9

10 Threshold Breaches Baseline (GEO 1-4, HEO 1-2, and Ground) APB Breaches Schedule Performance Cost RDT&E Procurement MILCON Acq O&M O&S Cost Unit Cost PAUC APUC Nunn-McCurdy Breaches Current UCR Baseline PAUC None APUC None Original UCR Baseline PAUC None APUC None Block Buy (GEO 5-6) APB Breaches Schedule Performance Cost RDT&E Procurement MILCON Acq O&M O&S Cost Unit Cost PAUC APUC Nunn-McCurdy Breaches Current UCR Baseline PAUC None APUC None Original UCR Baseline PAUC None APUC None UNCLASSIFIED 10

11 Schedule UNCLASSIFIED 11

12 Baseline (GEO 1-4, HEO 1-2, and Ground) Events Schedule Events SAR Baseline Development Estimate Current APB Production Objective/Threshold Current Estimate High Component Milestone II Oct 1996 Oct 1996 Oct 1996 Oct 1996 Low Component FDS CDR Dec 1996 N/A N/A N/A High Component PDR (Space and Ground Increment 2) Dec 1997 Dec 1997 May 1998 Dec 1997 Low Component FDS Launch Sep 1999 N/A N/A N/A Low Component Pre-EMD Start Oct 1999 N/A N/A N/A Low Component Milestone II Dec 2000 N/A N/A N/A High Component CDR (Space and Ground Increment 2) Sep 1999 Aug 2001 Aug 2001 Aug 2001 Ground Segment Increment 1 Certification Aug 1999 Dec 2001 Dec 2001 Dec 2001 Ground Segment Increment 2 Certification Jan 2002 N/A N/A N/A GEO Satellite 2 Launch Jun 2003 N/A N/A N/A SBIRS IOC Dec 2003 N/A N/A N/A GEO Satellite 3 Launch Jun 2004 N/A N/A N/A HEO Sensor 1 Delivery Sep 2001 Aug 2004 Aug 2004 Aug 2004 GEO Satellite 4 Launch Jun 2005 N/A N/A N/A HEO Sensor 2 Delivery Sep 2003 Sep 2005 Sep 2005 Sep 2005 HEO Message Certification N/A Dec 2008 Dec 2008 Dec 2008 GEO Satellite 1 Delivery N/A Mar 2011 Mar 2011 Mar 2011 GEO Satellite 2 Available for Delivery N/A Jun 2012 Dec 2012 Jun 2012 GEO Message Certification N/A Oct 2012 Oct 2013 Aug 2013 GEO Satellite 3 Available for Delivery N/A Dec 2015 Jun 2016 May 2015 (Ch-1) Initial Increment 2 Ground Architecture N/A Jun 2016 Dec 2016 Jun 2016 (Ch-2) GEO Satellite 4 Available for Delivery N/A Dec 2016 Jun 2017 Mar 2016 (Ch-3) GEO Satellite 4 Ready for PEO Certification N/A Feb 2018 Aug 2018 May 2018 (Ch-4) Final Increment 2 Ground Architecture N/A Sep 2018 Sep 2019 Jun 2018 Low Component Dem/Val Launch TBD N/A N/A N/A UNCLASSIFIED 12

13 Change Explanations (Ch-1) The current estimate for GEO Satellite 3 Available for Delivery changed from September 2015 to May 2015 due to favorable contractor performance. (Ch-2) The current estimate for Initial Increment 2 Ground Architecture changed from March 2016 to June 2016 due to the upgraded SBIRS 10.3 hardware/software baseline that delivers an operationally accepted and launch ready capability in February 2016 missed an intermediate schedule milestone on December 15, 2014 (completion of capability integration). (Ch-3) The current estimate for GEO Satellite 4 Available for Delivery changed from September 2016 to March 2016 due to favorable contractor performance. (Ch-4) The current estimate for GEO Satellite Ready for PEO Certification changed from February 2018 to May 2018 due to constellation health and program priorities shifted the fourth GEO launch date to September Notes GEO Satellite "Available for Delivery" is defined as the satellite successfully completing Final Integrated System Test and the satellite available such that if operational priorities require the satellite to launch at the earliest opportunity, then the satellite will continue final install processing to proceed to a Consent to Ship Review. If operational priorities indicate a later manifest, then the satellite will be configured for storage. Acronyms and Abbreviations CDR - Critical Design Review Dem/Val - Demonstration/Validation FDS - Flight Demonstration System GEO - Geosynchronous Earth Orbit HEO - Highly Elliptical Orbit PDR - Preliminary Design Review UNCLASSIFIED 13

14 Block Buy (GEO 5-6) Events Schedule Events SAR Baseline Production Estimate Current APB Production Objective/Threshold Current Estimate GEO Satellite 5 Available for Delivery Sep 2019 Sep 2019 Sep 2020 Sep 2020 GEO Satellite 6 Available for Delivery Sep 2020 Sep 2020 Sep 2021 Jul 2021 Change Explanations None Notes GEO Satellite "Available for Delivery" is defined as the GEO satellite successfully completing Final Integrated System Test and the satellite available such that if operational priorities require the satellite to launch at the earliest opportunity, then the satellite will continue Final Install processing to proceed to a Consent-to-Ship Review. If operational priorities indicate a later manifest, then the satellite will be configured for storage. GEO 5 and 6 delivery dates reflect the as-negotiated dates. The one-year period between the objective and threshold values addresses the schedule risk inherent in the first time production under a fixed price contract for a SBIRS satellite. Acronyms and Abbreviations GEO - Geosynchronous Earth Orbit UNCLASSIFIED 14

15 Performance Baseline (GEO 1-4, HEO 1-2, and Ground) Classified Performance information is provided in the classified annex to this submission. Notes Performance assessment based on full SBIRS constellation and Ground Segment UNCLASSIFIED 15

16 Block Buy (GEO 5-6) No performance characteristics exist for Block Buy (GEO 5-6). Notes Performance assessment based on full SBIRS constellation and Ground Segment UNCLASSIFIED 16

17 Track to Budget Baseline (GEO 1-4, HEO 1-2, and Ground) General Notes RDT&E Program Element (PE) F and Missile Procurement Air Force PE F, Line Item MSSBIR and , are shared. PE F includes funds for the Commercially Hosted Infrared Payload, Space Modernization Initiative and architecture studies that are not part of this MDAP. Line Item MSSBIR and include funds for Highly Elliptical Orbit payloads 3 and 4 that are not part of this MDAP. In December 2014, the Office of Management and Budget directed the DoD to establish a new space procurement appropriation as a five-year availability account. Beginning in FY 2016, Air Force major procurement funding formerly under appropriation 3020F (Missile Procurement, Air Force) BA 05 will now be under 3021F (Space Procurement, Air Force) BA 01. The FY 2016 PB justification books reflect the new 3021F appropriation, and the SARs for programs impacted by this new appropriation also reflect this change. RDT&E Appn BA PE Air Force F Procurement Project Name SBIR High Element EMD/SBIRS High EMD (Shared) Appn BA PE Air Force F Line Item Name MSSBIR SBIR High Missile Procurement (Shared) (Sunk) Air Force F Line Item Name MSSBIR SBIR High Missile (Shared) Air Force F MILCON Line Item Name Space Based IR Sensor Program Space (Shared) Appn BA PE Air Force F Acq O&M Project Name F SBIRS ARCHI-EMD (SPACE) Military Construction (Sunk) Appn BA PE Air Force F UNCLASSIFIED 17

18 Project Name 1G01 SBIRS Operation and Maintenance (Sunk) Block Buy (GEO 5-6) Procurement Appn BA PE Air Force F Line Item Name MSSBIR SBIR High Missile Procurement (Shared) (Sunk) Air Force F Line Item Name MSSBIR SBIR High Missile (Shared) UNCLASSIFIED 18

19 Cost and Funding Cost Summary - Program Appropriation SAR Baseline Development Estimate Acquisition Cost - Program BY 1995 $M BY 1995 $M TY $M Current APB Development Objective/Threshold Current Estimate SAR Baseline Development Estimate Current APB Development Objective Current Estimate RDT&E Non Support Procurement Non Support Other Support Initial Spares MILCON Acq O&M N/A UNCLASSIFIED 19

20 Cost and Funding Cost Summary - Baseline (GEO 1-4, HEO 1-2, and Ground) Appropriation Acquisition Cost - Baseline (GEO 1-4, HEO 1-2, and Ground) SAR Baseline Development Estimate BY 1995 $M BY 1995 $M TY $M Current APB Development Objective/Threshold Current Estimate SAR Baseline Development Estimate Current APB Development Objective Current Estimate RDT&E Procurement Non Support Other Support Initial Spares MILCON Acq O&M N/A Confidence Level Confidence Level of cost estimate for current APB: 55% Research, Development, Test and Evaluation cost profile is based on the April 2011 Air Force Service Cost Position (SCP) at a 57% confidence level. The Missile Procurement, Air Force cost profile for Geosynchronous Earth Orbit (GEO) satellites 3 and 4 is based on the April 2011 SCP at a 54% confidence level, with fact-of-life modifications. Cost Notes The costs above reflect the FY 2016 PB for the FYDP for GEO satellites 1-4, Highly Elliptical Orbit payloads 1 and 2, and ground modifications to meet the requirements in the SBIRS ORD, plus the cost to complete beyond the FYDP. Quantity Quantity - Baseline (GEO 1-4, HEO 1-2, and Ground) SAR Baseline Development Estimate Current APB Development Current Estimate RDT&E Procurement Quantity Notes The above quantity represents four GEO satellites. UNCLASSIFIED 20

21 Cost Summary - Block Buy (GEO 5-6) Appropriation SAR Baseline Production Estimate Acquisition Cost - Block Buy (GEO 5-6) BY 1995 $M BY 1995 $M TY $M Current APB Production Objective/Threshold Current Estimate SAR Baseline Production Estimate Current APB Production Objective Current Estimate RDT&E Non Support Procurement Non Support Other Support Initial Spares MILCON Acq O&M N/A Confidence Level Confidence Level of cost estimate for current APB: 50% The ICE to support the SBIRS Geosynchronous Earth Orbit (GEO) 5-6 procurement, like all life-cycle cost estimates previously performed by the CAPE, is built upon a product-oriented work breakdown structure, based on historical actual cost information to the maximum extent possible, and, most importantly, based on conservative assumptions that are consistent with actual demonstrated contractor and government performance for a series of acquisition programs in which the Department has been successful. It is difficult to calculate mathematically the precise confidence levels associated with life-cycle cost estimates prepared for MDAPs. Based on the rigor in methods used in building estimates, the strong adherence to the collection and use of historical cost information, and the review of applied assumptions, we project that it is about equally likely that the estimate will prove too low or too high for execution of the program described. Cost Notes The Procurement profile above reflects costs for the delivery of the GEO satellites 5 and 6, as documented in the FY 2016 PB. UNCLASSIFIED 21

22 Quantity SAR Baseline Production Estimate Quantity - Block Buy (GEO 5-6) Current APB Production Current Estimate RDT&E Procurement Quantity Notes The above quantity represents two GEO satellites. UNCLASSIFIED 22

23 Cost and Funding Funding Summary - Program Appropriation Summary FY 2016 President's Budget / (TY$ M) Appropriation Prior FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 To Complete RDT&E Procurement MILCON Acq O&M PB PB Delta UNCLASSIFIED 23

24 Cost and Funding Funding Summary - Baseline (GEO 1-4, HEO 1-2, and Ground) Appropriation Summary FY 2016 President's Budget / (TY$ M) Appropriation Prior FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 To Complete RDT&E Procurement MILCON Acq O&M PB PB Delta Quantity Undistributed Prior Quantity Summary FY 2016 President's Budget / (TY$ M) FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 To Complete Development Production PB PB Delta UNCLASSIFIED 24

25 Funding Summary - Block Buy (GEO 5-6) Appropriation Summary FY 2016 President's Budget / (TY$ M) Appropriation Prior FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 To Complete RDT&E Procurement MILCON Acq O&M PB PB Delta Quantity Undistributed Prior Quantity Summary FY 2016 President's Budget / (TY$ M) FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 To Complete Development Production PB PB Delta UNCLASSIFIED 25

26 Cost and Funding Annual Funding By Appropriation - Baseline (GEO 1-4, HEO 1-2, and Ground) Fiscal Year Quantity Annual Funding - Baseline (GEO 1-4, HEO 1-2, and Ground) 3600 RDT&E Research, Development, Test, and Evaluation, Air Force End Item Non End Item TY $M Non Support Program Subtotal UNCLASSIFIED 26

27 Fiscal Year Quantity Annual Funding - Baseline (GEO 1-4, HEO 1-2, and Ground) 3600 RDT&E Research, Development, Test, and Evaluation, Air Force End Item Non End Item BY 1995 $M Non Support Program Subtotal UNCLASSIFIED 27

28 Funds for the Commercially Hosted Infrared Payload (CHIRP), project number A040, were removed from this report. Those RDT&E funds are not associated with the baseline SBIRS program. The removed profile is (Then Year $): FY 2011 $22.1M FY 2012 $17.7M Funds for Space Modernization Initiative efforts, project number 7009, were excluded from this report. Those RDT&E funds are not associated with the baseline SBIRS program. The omitted profile is (Then Year $): FY 2013 $78.7M FY 2014 $57.8M FY 2015 $78.6M FY 2016 $88.7M FY 2017 $88.8M FY 2018 $88.5M FY 2019 $90.1M FY 2020 $91.7M Funds for Evolved SBIRS, project number 7106, were excluded from this report. Those RDT&E funds are not associated with the baseline SBIRS program. The omitted profile is (then year $): FY 2018 $295.0M FY 2019 $518.7M FY 2020 $528.0M PE F is shared with HEO replenishment Payload's ground effort, which is not part of the MDAP. $39.7M in FY 2013 funds and $14.6M in FY 2016 funds associated with that effort are excluded from the report. UNCLASSIFIED 28

29 Fiscal Year Quantity Annual Funding - Baseline (GEO 1-4, HEO 1-2, and Ground) 3020 Procurement Missile Procurement, Air Force End Item Non End Item TY $M Non Support Program Subtotal UNCLASSIFIED 29

30 Fiscal Year Quantity Annual Funding - Baseline (GEO 1-4, HEO 1-2, and Ground) 3020 Procurement Missile Procurement, Air Force End Item Non End Item BY 1995 $M Non Support Program Subtotal UNCLASSIFIED 30

31 The Missile Procurement Air Force (MPAF) funding profile above represents funding for Geosynchronous Earth Orbit satellites 3 and 4 as displayed in the associated P-5 exhibits in the FY 2016 PB. MPAF funds for Highly Elliptical Orbit 3 and 4 payloads are excluded above, but are reflected in the associated P-5 exhibit in the FY 2016 PB. The omitted profile is (Then Year $): FY 2008 $124.6M FY 2009 $529.9M FY 2010 $282.3M FY 2011 $60.4M FY 2012 $14.6M FY 2013 $34.1M FY 2014 $29.4M FY 2015 $35.5M Cost Quantity Information - Baseline (GEO 1-4, HEO 1-2, and Ground) 3020 Procurement Missile Procurement, Air Force Fiscal Year Quantity End Item (Aligned With Quantity) BY 1995 $M Subtotal UNCLASSIFIED 31

32 Fiscal Year Quantity Annual Funding - Baseline (GEO 1-4, HEO 1-2, and Ground) 3080 Procurement Other Procurement, Air Force End Item Non End Item TY $M Non Support Program Subtotal UNCLASSIFIED 32

33 Fiscal Year Quantity Annual Funding - Baseline (GEO 1-4, HEO 1-2, and Ground) 3080 Procurement Other Procurement, Air Force End Item Non End Item BY 1995 $M Non Support Program Subtotal UNCLASSIFIED 33

34 Fiscal Year Quantity Annual Funding - Baseline (GEO 1-4, HEO 1-2, and Ground) 3021 Procurement Space Procurement, Air Force End Item Non End Item TY $M Non Support Program Subtotal UNCLASSIFIED 34

35 Fiscal Year Quantity Annual Funding - Baseline (GEO 1-4, HEO 1-2, and Ground) 3021 Procurement Space Procurement, Air Force End Item Non End Item BY 1995 $M Non Support Program Subtotal UNCLASSIFIED 35

36 The Missile Procurement Air Force (MPAF) funding profile above represents funding for Geosynchronous Earth Orbit satellites 3 and 4 as displayed in the associated P-5 exhibits in the FY 2016 PB. MPAF funds for Highly Elliptical Orbit 3 and 4 payloads are excluded above, but are reflected in the associated P-5 exhibit in the FY 2016 PB. FY 2016 $10.4M FY 2017 $20.7M FY 2018 $7.6M UNCLASSIFIED 36

37 Annual Funding - Baseline (GEO 1-4, HEO 1-2, and Ground) 3300 MILCON Military Construction, Air Force Fiscal Year TY $M Program Subtotal 57.0 UNCLASSIFIED 37

38 Annual Funding - Baseline (GEO 1-4, HEO 1-2, and Ground) 3300 MILCON Military Construction, Air Force Fiscal Year BY 1995 $M Program Subtotal 52.0 UNCLASSIFIED 38

39 Annual Funding - Baseline (GEO 1-4, HEO 1-2, and Ground) 3400 Acq O&M Operation and Maintenance, Air Force Fiscal Year TY $M Program Subtotal UNCLASSIFIED 39

40 Annual Funding - Baseline (GEO 1-4, HEO 1-2, and Ground) 3400 Acq O&M Operation and Maintenance, Air Force Fiscal Year BY 1995 $M Program Subtotal UNCLASSIFIED 40

41 Annual Funding By Appropriation - Block Buy (GEO 5-6) Fiscal Year Quantity Annual Funding - Block Buy (GEO 5-6) 3020 Procurement Missile Procurement, Air Force End Item Non End Item TY $M Non Support Program Subtotal UNCLASSIFIED 41

42 Fiscal Year Quantity Annual Funding - Block Buy (GEO 5-6) 3020 Procurement Missile Procurement, Air Force End Item Non End Item BY 1995 $M Non Support Program Subtotal UNCLASSIFIED 42

43 The procurement profile above reflects procurement costs for the delivery of the Geosynchronous Earth Orbit satellites 5 and 6, as documented in the FY 2016 PB. The costs above reflect the requirements for GEOs 5 and 6 production, launch, operations, checkout and support. Cost Quantity Information - Block Buy (GEO 5-6) 3020 Procurement Missile Procurement, Air Force Fiscal Year Quantity End Item (Aligned With Quantity) BY 1995 $M Subtotal UNCLASSIFIED 43

44 Fiscal Year Quantity Annual Funding - Block Buy (GEO 5-6) 3021 Procurement Space Procurement, Air Force End Item Non End Item TY $M Non Support Program Subtotal UNCLASSIFIED 44

45 Fiscal Year Quantity Annual Funding - Block Buy (GEO 5-6) 3021 Procurement Space Procurement, Air Force End Item Non End Item BY 1995 $M Non Support Program Subtotal UNCLASSIFIED 45

46 The procurement profile above reflects procurement costs for the delivery of the Geosynchronous Earth Orbit satellites 5 and 6, as documented in the FY 2016 PB. The costs above reflect the requirements for GEOs 5 and 6 production, launch, operations, checkout and support. UNCLASSIFIED 46

47 Low Rate Initial Production Baseline (GEO 1-4, HEO 1-2, and Ground) There is no LRIP for this program. Block Buy (GEO 5-6) There is no LRIP for this program. UNCLASSIFIED 47

48 Foreign Military Sales Baseline (GEO 1-4, HEO 1-2, and Ground) Country Date of Sale Quantity Cost $M Description Australia 3/8/ The FMS case with Australia established the agreement for the sale of a SBIRS satellite data processor, satellite data interface system, and contractor logistics support. Notes Block Buy (GEO 5-6) None Nuclear Costs Baseline (GEO 1-4, HEO 1-2, and Ground) None Block Buy (GEO 5-6) None UNCLASSIFIED 48

49 Unit Cost Baseline (GEO 1-4, HEO 1-2, and Ground) Unit Cost Report Item BY 1995 $M BY 1995 $M Current UCR Baseline (Feb 2013 APB) Current Estimate (Dec 2014 SAR) % Change Program Acquisition Unit Cost Cost Quantity 4 4 Item Average Procurement Unit Cost Cost Quantity 2 2 Unit Cost Item BY 1995 $M BY 1995 $M Revised Original UCR Baseline (Mar 2006 APB) Current Estimate (Dec 2014 SAR) % Change Program Acquisition Unit Cost Cost Quantity 3 4 Unit Cost Average Procurement Unit Cost Cost Quantity 1 2 Unit Cost UNCLASSIFIED 49

50 Baseline (GEO 1-4, HEO 1-2, and Ground) Unit Cost History Item Date BY 1995 $M TY $M PAUC APUC PAUC APUC Original APB Oct N/A N/A APB as of January 2006 Sep Revised Original APB Mar Prior APB Sep Current APB Feb Prior Annual SAR Dec Current Estimate Dec Initial PAUC Development Estimate SAR Unit Cost History Current SAR Baseline to Current Estimate (TY $M) Changes Econ Qty Sch Eng Est Oth Spt PAUC Current Estimate UNCLASSIFIED 50

51 Initial APUC Development Estimate Current SAR Baseline to Current Estimate (TY $M) Changes Econ Qty Sch Eng Est Oth Spt APUC Current Estimate Item SAR Planning Estimate SAR Baseline History SAR Development Estimate SAR Production Estimate Current Estimate Milestone I N/A N/A N/A N/A Milestone II N/A Oct 1996 N/A Oct 1996 Milestone III N/A N/A N/A N/A IOC N/A Dec 2003 N/A N/A Cost (TY $M) N/A Quantity N/A 5 N/A 4 PAUC N/A N/A UNCLASSIFIED 51

52 Block Buy (GEO 5-6) Unit Cost Report Item BY 1995 $M BY 1995 $M Current UCR Baseline (Feb 2013 APB) Current Estimate (Dec 2014 SAR) % Change Program Acquisition Unit Cost Cost Quantity 2 2 Item Average Procurement Unit Cost Cost Quantity 2 2 Unit Cost Item BY 1995 $M BY 1995 $M Original UCR Baseline (Sep 2012 APB) Current Estimate (Dec 2014 SAR) % Change Program Acquisition Unit Cost Cost Quantity 2 2 Unit Cost Average Procurement Unit Cost Cost Quantity 2 2 Unit Cost UNCLASSIFIED 52

53 Block Buy (GEO 5-6) Unit Cost History Item Date BY 1995 $M TY $M PAUC APUC PAUC APUC Original APB Sep APB as of January 2006 N/A N/A N/A N/A N/A Revised Original APB N/A N/A N/A N/A N/A Prior APB Sep Current APB Feb Prior Annual SAR Dec Current Estimate Dec Initial PAUC Production Estimate SAR Unit Cost History Current SAR Baseline to Current Estimate (TY $M) Changes Econ Qty Sch Eng Est Oth Spt PAUC Current Estimate UNCLASSIFIED 53

54 Initial APUC Production Estimate Current SAR Baseline to Current Estimate (TY $M) Changes Econ Qty Sch Eng Est Oth Spt APUC Current Estimate Item SAR Planning Estimate SAR Baseline History SAR Development Estimate SAR Production Estimate Current Estimate Milestone A N/A N/A N/A N/A Milestone B N/A N/A N/A N/A Milestone C N/A N/A N/A N/A IOC N/A N/A N/A N/A Cost (TY $M) N/A N/A Quantity N/A N/A 2 2 PAUC N/A N/A UNCLASSIFIED 54

55 Cost Variance Baseline (GEO 1-4, HEO 1-2, and Ground) Summary TY $M Item RDT&E Procurement MILCON Acq O&M SAR Baseline (Development Estimate) Previous Changes Economic Quantity Schedule Engineering Estimating Other Support Subtotal Current Changes Economic Quantity Schedule Engineering Estimating Other Support Subtotal Changes CE - Cost Variance CE - Cost & Funding UNCLASSIFIED 55

56 Summary BY 1995 $M Item RDT&E Procurement MILCON Acq O&M SAR Baseline (Development Estimate) Previous Changes Economic Quantity Schedule Engineering Estimating Other Support Subtotal Current Changes Economic Quantity Schedule Engineering Estimating Other Support Subtotal Changes CE - Cost Variance CE - Cost & Funding Previous Estimate: September 2014 UNCLASSIFIED 56

57 RDT&E $M Current Change Explanations Revised escalation indices. (Economic) N/A -6.9 Adjustment for current and prior escalation. (Estimating) Revised estimate to reflect the application of new out year escalation indices. (Estimating) Revised estimate to reflect six month contract extension for Combined Task Force. (Estimating) RDT&E Subtotal Base Year Procurement $M Current Change Explanations Revised escalation indices. (Economic) N/A -3.5 Adjustment for current and prior escalation. (Estimating) Revised estimate to reflect an increase for Geosynchronous Earth Orbit (GEO) 3 storage (Estimating) Revised estimate to reflect new 3021 APPN (reduction to APPN 3020 funding). (Estimating) Revised estimate to reflect addition of new 3021 APPN funding. (Estimating) Adjustment for current and prior escalation. (Support) Decrease in Other Support due to shift of Evolved Expendable Launch Vehicle funds as a result of the Initial Launch Capability date change. (Support) Increase in Other Support due to the FY 2016 funding of two S2E2 Survivable Mobile Ground Terminals, increasing the total from three to five. (Support) Increase in Other Support due to an increase for GEO 3 storage. (Support) Procurement Subtotal Base Year Then Year Then Year UNCLASSIFIED 57

58 Cost Variance Block Buy (GEO 5-6) Summary TY $M Item RDT&E Procurement MILCON SAR Baseline (Production Estimate) Previous Changes Economic Quantity Schedule Engineering Estimating Other Support Subtotal Current Changes Economic Quantity Schedule Engineering Estimating Other Support Subtotal Changes CE - Cost Variance CE - Cost & Funding UNCLASSIFIED 58

59 Summary BY 1995 $M Item RDT&E Procurement MILCON SAR Baseline (Production Estimate) Previous Changes Economic Quantity Schedule Engineering Estimating Other Support Subtotal Current Changes Economic Quantity Schedule Engineering Estimating Other Support Subtotal Changes CE - Cost Variance CE - Cost & Funding Previous Estimate: September 2014 UNCLASSIFIED 59

60 Procurement $M Current Change Explanations Revised escalation indices. (Economic) N/A Adjustment for current and prior escalation. (Estimating) Revised estimate to reflect increase primarily due to dual band ground control from FY to FY 2016 PB. (Estimating) Revised estimate to reflect new 3021 APPN (FY 2015 and prior years). (Estimating) Revised estimate to reflect new 3021 APPN (FY 2016 and out-years funding). (Estimating) Adjustment for current and prior escalation. (Support) Decrease in Other Support due to 3021 APPN (FY 2015 and prior years). (Support) Increase in Other Support due to new 3021 APPN (FY 2016 and out-years funding) ($445.9M), and the awarded Geosynchronous Earth Orbit Launch Operation and Checkout costs being higher than estimated ($20.0M). (Support) Procurement Subtotal Base Year Then Year UNCLASSIFIED 60

61 Contracts Contract Identification Appropriation: RDT&E Contract Name: SBIRS 5-6 Initial Non- Engineering Contractor: Lockheed Martin Corporation Contractor Location: Sunnyvale, CA Contract Number: FA C-0001 Contract Type: Cost Plus Incentive Fee (CPIF) Award Date: September 10, 2012 Definitization Date: September 11, 2012 Contract Price Initial Contract Price ($M) Current Contract Price ($M) Estimated Price At Completion ($M) Target Ceiling Qty Target Ceiling Qty Contractor Program Manager 81.9 N/A N/A N/A N/A Target Price Change Explanation The difference between the Initial Contract Price Target and the Current Contract Price Target is due to the Geosynchronous Earth Orbit (GEO) 5 and 6 Initial Non- Engineering (I-NRE) contract being awarded in September 2012, with an Engineering Change Proposal (ECP) to modify the contract to complete all component builds through component qualification added in December It is a CPIF contract with a Contract Target Price of $148.6M, which includes the I-NRE and the ECP. There is no contract quantity associated with this I-NRE contract. The Contractor Estimated Price at Completion is $147.3M compared to $147.7M in the September Out of Cycle 2014 SAR. The decrease is due to EAC efficiencies in Payload Systems Engineering, Integration and Test support. The government s Estimated Price at Completion is $148.6M. Contract Variance Item Cost Variance Schedule Variance Cumulative Variances To Date (1/31/2015) Previous Cumulative Variances Net Change Cost and Schedule Variance Explanations The favorable net change in the cost variance is due to to efficiencies in completing Northrop Grumman payload effort and level of effort under-runs in program management. The unfavorable net change in the schedule variance is due to delays with Space Bus Communication unit assemblies. UNCLASSIFIED 61

62 Contract Identification Appropriation: Procurement Contract Name: SBIRS Follow-on Production Contractor: Lockheed Martin Corporation Contractor Location: Sunnyvale, CA Contract Number: FA C-0002 Contract Type: Cost Plus Award Fee (CPAF) Award Date: March 14, 2008 Definitization Date: June 07, 2010 Contract Price Initial Contract Price ($M) Current Contract Price ($M) Estimated Price At Completion ($M) Target Ceiling Qty Target Ceiling Qty Contractor Program Manager N/A N/A Target Price Change Explanation The difference between the Initial Contract Price Target and the Current Contract Price Target is due to additional scope. The Initial Contract Price Target included Highly Elliptical Orbit (HEO)-3 and Geosynchronous Earth Orbit (GEO)-3 long lead effort ($370.0M). Since then the program office exercised the HEO-3 and 4 and GEO-3 and 4 production efforts, HEO-3 ground modification effort, Launch Vehicle Integration, Launch and Early On-Orbit Support and various special studies, all on separate contract line items. The increased quantity from zero to four is due to the contract award of the HEO 3-4 and GEO 3-4 production efforts. The contractor Estimated Price at Completion is $3,197.5M, compared to $3,187.9M, in the September Out of Cycle 2014 SAR, is primarily due to additional scope added for the Space Vehicle Launch Processing Alternate Facility & Delta IV compatiblity study. The government s Estimated Price at Completion is $3,416.5M, derived from the 2014 Single Best Estimate (SBE), which assumes an April 2015 HEO-4 Payload delivery, a September 2015 GEO-3 delivery, and a September 2016 GEO-4 delivery. HEO-3 Payload was delivered in June Contract Variance Item Cost Variance Schedule Variance Cumulative Variances To Date (1/31/2015) Previous Cumulative Variances Net Change Cost and Schedule Variance Explanations The favorable net change in the cost variance is due to Level of Effort and Program Management Office under-runs and efficiencies in Northrop Grumman payload. Additionally, the favorable variance was driven by effective cost control for work that will be realigned through the GEO 3-4 Initial Launch Capability (ILC) Proposal. Resource planning will be realigned once the proposal is negotiated. The unfavorable net change in the schedule variance is due to delays to GEO-3 activities associated with GEO 3-4 ILC proposal as well as delays with GEO-3 TVAC and GEO-4 equipment panel integration. Work will be realigned through the GEO 3-4 ILC proposal. Unfavorable schedule variance for impacted efforts will remain until resolution of activities leading to GEO 3-4 launch dates are reached. UNCLASSIFIED 62